VanceInfo profit beats Street, ups '08 revenue view

(Reuters) - China-based VanceInfo Technologies Inc (VIT.N), which provides information technology and software development services, posted better-than-expected quarterly profit, helped by growth in its research and development service segment, and raised its 2008 revenue forecast.

The company, which also lifted the lower end of its full-year earnings view, reported second-quarter net income of $3.6 million, or 9 cents a share, compared with $2.3 million, or 5 cents a share, a year ago.

Revenue rose 63 percent to $24.4 million, driven by a 59 percent jump in revenue from the research and development service segment to $14.4 million.

Analysts on average expected earnings of 8 cents a share, on revenue of $22.3 million, according to Reuters Estimates.

For the third quarter, VanceInfo expects sequentially flat earnings per share and revenue of $25 million to $26 million. Analysts were expecting earnings of 10 cents a share, before items, on revenue of $25.8 million.

For 2008, the company lifted the lower end of its earnings outlook by a cent to between 35 cents and 38 cents a share. It sees revenue of $96 million to $99 million, up from its prior view of $92 million to $96 million.

Analysts were looking for a profit of 37 cents a share, before special items, on revenue of $96 million.

Shares of the company, whose largest clients include Microsoft Corp (MSFT.O) and IBM Corp (IBM.N), closed at $9.17 Wednesday on the New York Stock Exchange.

(Reporting by Deepti Govind in Bangalore; Editing by Himani Sarkar)